Turkish Property Tax

How is the tax amount calculated when buying a property in Turkey

When buying real estate, a tax is charged in the amount of 4% of the cadastral value of the object, which is given by the state body – Tapu Müdürlüğü, which issues a document confirming ownership of the property – Tapu.

This tax is paid once, when buying a property. A message is sent to the phone number specified when submitting an application for real estate renewal, where the details and the amount of tax to be paid are indicated. Property owners also pay an annual tax on the amount of the cadastral value. The amount of tax depends on the type of property, as well as on its location.

How is the amount of the annual property tax calculated?

In small towns, the tax amounts are lower than in large ones.

• So, for residential real estate (apartment, house, villa), this tax will be 0.1-0.6%
• For commercial – 0.2 – 0.4
• For land plots – 0.1-0.6%

How is the tax amount calculated when selling real estate

When selling real estate that has been owned for less than 5 years, the owners pay tax on the difference in cadastral value at the time of purchase and sale of the object. The tax amount ranges from 15 to 35% and depends on the amount of this difference. If the difference does not exceed 11,000 liras, no tax is paid.

How is the tax amount calculated when renting out real estate

When renting out real estate, income tax is also paid from 15% (if income does not exceed 3330 euros per year) to 35% (if income exceeds 28,000 euros). Legal entities pay 20%. The minimum amount of tax–free profit for individuals is 970 euros per year. For legal entities – 7680 euros per year.

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